Google Reduces the Cost of Software for US Government Agencies
Google plans to take advantage of the Trump administration’s cost-cutting measures and challenge Microsoft’s established dominance in the government software industry by providing hefty discounts to U.S. federal agencies for its business apps package.
Trump’s Drive to Reduce Federal Spending Is Joined by Elon Musk’s DOGE Reform Team
The action coincides with U.S. President Donald Trump’s efforts to reduce federal expenditure through the DOGE government reform team, led by billionaire ally Elon Musk, which is attempting to reduce agencies and terminate contracts.
The US government could save $2 billion because to Google’s 71% discount deal with GSA
Google said Thursday that if the 71% discount, which is part of an agreement with the U.S. General Services Administration (GSA), is adopted by the entire government, federal agencies may save up to $2 billion in costs.
One of the first departments to be laid off by the Department of Government Efficiency (DOGE) was the General Services Administration (GSA), which oversees government property and services.
“The Workspace agreement marks a step forward in GSA’s work with Google and other companies to create cost savings for the federal government,” the agency explained on Thursday.
According to the GSA, pricing would now be determined by the “volume of the entire government” as opposed to the lesser savings that were previously offered through agency-by-agency arrangements.
With the discounts in force until September 30, Google may be able to further establish itself in government spending contracts, which are now controlled by Microsoft.
Google Introduces AI in Workspace to Compete with Microsoft
In an effort to compete with Microsoft for a larger share of consumer, business, and government budgets, Google has been bolstering its services with a number of AI technologies powered by its huge language model Gemini to its Workspace package.
Certain government agencies have already begun using workspace. Since 2021, its products have been used by the Air Force Research Laboratory, which provides support to the U.S. Air Force and the U.S. Space Force, according to Google.
